Tuesday, June 16, 2015

The release of a report on renminbi internationalization comes as members of the IMF are on a visit to China

By

Lingling Wei

Updated June 15, 2015 1:33 p.m. ET

BEIJING—China’s central bank is preparing to take new steps to lift the global profile of the yuan as the International Monetary Fund reviews whether to grant it elite status as a reserve currency. In a report issued late last week, the People’s Bank of China detailed moves it will take to encourage the IMF to take that step, putting the currency on a par with the dollar, euro, yen and pound sterling. Reserve status could potentially encourage other central banks to increase their holdings of the currency.

To win approval from the IMF, Beijing must make the case that the yuan can easily be used in international markets. Potential steps listed in the report include opening the door wider for foreign central banks and other institutional investors to invest in China’s bond market.

The report on internationalization of the yuan—also known as the renminbi, or people’s currency—comes as a team from the IMF visits China this week to help assess whether to declare the yuan an official reserve currency. On Monday and Tuesday, the IMF team was scheduled to hold technical discussions in Shanghai with officials at the Chinese central bank and China Foreign Exchange Trading System, which oversees currency trading in China, according to people with knowledge of the matter.

Beijing’s push comes as it seeks to wield more influence over the global economy. Chinese officials hope that over time, reserve-currency status would increase demand for the yuan among central banks as Beijing challenges the U.S.’s political and economic dominance around the world.

“The SDR entry would give China a greater say in the international monetary system,” a Chinese central-bank official said on Monday. “No question. We’re making real efforts to make it happen.” Efforts to win reserve-country status could also help accelerate the liberalization of China’s heavily regulated financial markets. PBOC Gov. Zhou Xiaochuan has said China will free up interest rates and the flow of capital across the border by the end of the year.

Gaining reserve-currency status for the yuan isn’t likely to affect how countries manage their foreign-exchange holdings right away, but “it potentially paves the way towards renminbi internationalization by encouraging institutional investors to catch up in this underinvested currency,” said Helen Qiao, an analyst at Morgan Stanley. In its report, China’s central bank estimated that at the end of April, foreign central banks held approximately 666.7 billion yuan ($107.41 billion) in their foreign-exchange reserves. It was the first time the PBOC has disclosed such data.

The central bank didn’t detail how many yuan individual countries are holding, but the totals are rising. Over the past year, countries including the U.K. and Australia have begun adding the currency to their official reserves, though the yuan still represents only a sliver of the total.

According to IMF data, the world’s central banks had allocated more than $6 trillion of foreign-exchange reserves at the end of last year. More than 60% was in U.S. dollars, followed by 23% in euros, 4% in the yen and 3.9% in the pound sterling. China’s estimates rank the amount of yuan assets in global central-bank reserves right behind those of Canadian and Australian dollars.Senior IMF officials, including managing director Christine Lagarde, have indicated that the organization shares Beijing’s interest in giving the yuan reserve-currency status. The issue, officials have indicated, is when the currency will be added.

To be awarded reserve-currency status, the yuan must be “freely usable,” a term the agency has wide freedom to interpret. China’s efforts in recent years to foster greater international use of the yuan could help it to satisfy the IMF.Nearly 25% of China’s trade was conducted in yuan last year, official data show, up from 0.02% in 2009.

Beijing’s growing economic clout has added to tensions between China and the U.S. The White House suffered a diplomatic bruising earlier this year, when many U.S. allies rejected lobbying by the administration against a new Beijing -led infrastructure bank. They instead became founding members of the Asian Infrastructure Investment Bank, or AIIB, which has been seen as a potential rival to the U.S.-led World Bank.

“It’s critical that the U.S. avoid another AIIB-like moment where it opposes a new Chinese initiative that is widely embraced by others and leaves the U.S. defeated and isolated,” said Scott Kennedy, a China analyst at the Center for Strategic and International Studies, a Washington-based think tank. In recent months, China has accelerated the overhaul by putting in place a long-awaited deposit insurance system and moving closer to freeing up interest rates, a step seen as critical to further changes. In addition, it has given foreign investors greater access to Chinese securities and made it easier for Chinese to invest abroad. Beijing is putting the final touches on a trial program to give Chinese residents and companies expanded, direct access to stocks, bonds and real estate in foreign markets.

“China is not far from realizing its goal of capital-account liberalization,” the PBOC said in its report, referring to free cross-border flows of funds for financial transactions.

Monday, June 15, 2015

Shafaq News / The Iraqi Finance Ministry announced on Sunday the arrival of a government and ministerial delegation to the Turkish city of Istanbul to discuss the final stages in the process of issuing sovereign government bonds in the global financial market.

According to a statement issued by the Ministry of Finance received by Shafaq News, the delegation includes Minister of Finance, Hoshyar Zebari , Minister of Oil ,Adel Abdul Mahdi , Minister of Planning , Salman al-Jumaili , Governor of the Central Bank , Ali al-Alaq , advisor to the Prime Minister for Economic Affairs , Mathehar Mohammed Saleh and senior advisers and experts of ministries and the central bank.

The statement added that the delegation began meetings with representatives of international banks, "Citibank" , "JP Morgan" and "Deutsche Bank" to review the financial , economic, political and security report on Iraq, as well as the international law office of Iraq.

The statement said that the delegation is scheduled to meet with the census and credit International Modine and Fitch Companies in order to determine the credit rating of Iraq in the international capital market.

The budget law for 2015, passed by the Iraqi parliament has authorized the government to issue sovereign government bonds by seven trillion dinars to cover the fiscal deficit in the budget.

Shafaq News / An official letter issued by the Ministry of Finance in Kurdistan Regional Government (KRG) revealed on Sunday, that the ministry has a debt to the citizens of more than three trillion dinars in the form of loans and advances delivered to them during the last period.

The letter, seen by Shafaq News noted that the debt includes loans and advances received by the citizens from the real estate, agriculture, industry, housing banks, explaining that it reached at the end of March to 3 trillion , 992 billion , 356 million , 869 thousand and 350 dinars , handed over to 230 thousand and 281 people.

He added that the amounts that citizens gave it back to the same date to the government was amounted to 957 billion, 779 million , 12 thousand and 289 dinars, indicating that the remaining funds among the citizens are 3 trillion , 34 billion , 577 million , 857 thousand and 61 dinars.

KRG suffers from a crisis of liquidity since the Iraqi government deducted its share of the Iraqi general budget in the era of former Prime Minister , Nuri al-Maliki since February 2014 because of differences with Erbil on the issue of exporting oil without federal government’s approval.

Saturday, June 13, 2015

Like Iraq, the Iraqi Dinar has been under siege ....under siege by Scoundrels who have engaged in a "Get Rich Quick" scheme to mislead great people and defraud investors in the Iraq Dinar. D-Day for one such Scoundrel was 3 June, 15 when the FBI took down the Sterling Currency Group and their co-conspirator Guru Promoters leaving thousands of victims in their wake.

The 48 page Amended Federal Complaint against the Sterling Scoundrels is not an indictment of the Iraq Currency.

The D-Day Aftermath is a call to action for a Dinarian gameplan. A precursor to any successful gameplan is intelligence from reliable sources and no one is better suited to contribute than Mr. Omar Humadi, Senior Advisor Ambassador Mohammed Alhakim and the Iraqi Mission to the United Nations in New York.

Prior to his appointment as Senior Advisor, and drawing upon his expertise in US politics, Mr. Humadi has assisted the Iraqi Embassy in Washington, D.C. where he has played a leading role in defining bilateral relations with one of Iraq's most important allies. He has made numerous trips to Iraq in conjunction with this work and his family lives in Baghdad

Mr. Humadi was first introduced to the Dinarian community by us on the evening of August 7, 2013, and the information revealed at that time (while disputed by many "Guru Loyalists") was on-point then and proven true today.

You are invited to join us for a frank discussion on a serious subject.

Friday, June 12, 2015

If you suffer from Arithmophobia (fear of numbers) you might want to stop reading now. The Zimbabwean central bank is offering to convert Zimbabwean dollars into the foreign currency which in practice has been the only way of buying anything in the country for years. Customers can exchange 250,000,000,000,000 Zimbabwe dollars for 1 US dollar, according to the Guardian. To put that in context, if you earned a Zimbabwean dollar for every second of your life, you would have 1 US cent by the time you reached the age of 79,275 (yes that’s seventynine thousand two hundred and seventyfive).

However, if your money is in the bank already, or was printed after 2009 when foreign currency became officially accepted in the country, the exchange rate is not quite so good and you will need 35,000,000,000,000,000 Zimbabwe dollars to get one US dollar. As a special offer, however, if your account has less than 175 quadrillion (175,000,000,000,000,000) in it, you can get $5 straight up.

You need to change your money before September or it is liable to become worthless. The highest note Zimbabwe ever issued was the 100 trillion, now popular as a tourist souvenir but worth only 40 US cents.

From next Monday Zimbabweans with have their mental arithmetic simplified for them with the news some zeros are coming off the currency.

Quite a lot of zeros. No less than 16, as the federal reserve attempts to end funny money by offering one new Zimbabwe dollar in exchange for 35 quadrillion old ones.

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However the real hyperinflation rate is in fact worse. The money being replaced was only issued in 2008, when the exchange rate was one for 10 billion. The real hyperinflation rate has 25 zeroes attached.

This is now hyperinflation an elderly German would recognise, with all its attendant risks. Since 2009 the dollar and other foreign currencies have been vital for Zimbabwe to remain afloat as confidence in the local currency and government’s economic policy of continually printing money has collapsed.

From being a nation of multi-billionaires Zimbabweans will be much poorer from next week; but then most people knew that already.

Thursday, June 11, 2015

Zimbabweans will start exchanging "quadrillions" of local dollars for a few U.S. dollars next week, as President Robert Mugabe's government discards its virtually worthless national currency, the central bank said on Thursday.

At the height of Zimbabwe's economic crisis in 2008, Zimbabweans had to carry plastic bags bulging with bank notes to buy basic goods like bread and milk. Prices were rising at least twice a day. From Monday, customers who held Zimbabwean dollar accounts before March 2009 can approach their banks to convert their Zimbabwean dollar balance into dollars, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said in a statement.

The process will legally end the local currency. Zimbabweans have until September to turn in their old bank notes, which some people sell as souvenirs to tourists.

Bank accounts with balances of up to 175 quadrillion Zimbabwean dollars will be paid $5. Those with balances above 175 quadrillion dollars will be paid at an exchange rate of $1 to 35 quadrillion Zimbabwean dollars.The highest—and last—bank note to be printed by the RBZ in 2008 was 100 trillion Zimbabwean dollars. It was not enough to ride a public bus to work for a week.

The RBZ said customers who still have stashes of old Zimbabwean dollar notes can walk into any bank and get $1 for every 250 trillion they hold.

That means a holder of a 100 trillion bank note will on Monday get 40 cents. The RBZ has set aside $20 million to pay Zimbabwean dollar currency holders.

Wednesday, June 10, 2015

Given the recent attacks on single member LLC’s in Florida, Colorado and elsewhere, the best LLC law that was, has recently been updated. On March 5, 2010, when Governor Dave Freudenthal signed into law the 2010 Wyoming Limited Liability Company Act (2010 LLC Act or New Act), a comprehensive update to Wyoming’s LLC laws.

“The state of Wyoming again has the best LLC asset protection law in the nation.”

A single member LLC is protected by charging order

Better asset protection law than any other state

Wyoming law does not allow any room for interpretation

Wyoming Asset Protection Trust can be linked to the LLC for Estate Planning advantages

Wyoming LLC is confidential and private

Zero Wyoming state tax for an LLC

Much lower cost than Nevada

Sole member and multi-member LLC’s protected

Wyoming has pioneered a new form of LLC that precludes creditors from any legal or equitable remedy other than a charging order against the LLC interest, even as to Single Member LLC’s. The charging order is the “exclusive remedy.” This means that you do not have to have 2 or more members in the LLC to get the charging order protection! Other remedies, including foreclosure and a “court order for directions, accounts and inquiries” are not available and may not be ordered by a court.

Why NOT Nevada or California?

Wyoming’s law is better than any of the other popular states.

California allows a court to charge the LLC interest; appoint a receiver; order foreclosure; and make all other orders, directions, accounts and inquiries the judgment debtor might have made or the circumstances require.

Nevada declares charging order to be the exclusive remedy, but gives the creditor rights of an assignee.

Delaware provides for charging order as exclusive remedy, but then also provides that it constitutes a lien on the debtor’s LLC interest. Wyoming does not even allow a lien!

Interpretation Not Required...Or Permitted!Wyoming Law does not allow any room for interpretation. The law states...

“On application by a judgment creditor of a member or transferee, a court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. A charging order requires the limited liability company to pay over to the person to which the charging order was issued any distribution that would otherwise be paid to the judgment debtor.”

“This section provides the exclusive remedy by which a person seeking to enforce a judgment against a judgment debtor, including any judgment debtor who may be the sole member, dissociated member or transferee, may, in the capacity of the judgment creditor, satisfy the judgment from the judgment debtor’s transferable interest or from the assets of the limited liability company. Other remedies, including foreclosure on the judgment debtor’s limited liability interest and a court order for directions, accounts and inquiries that the judgment debtor might have made are not available to the judgment creditor attempting to satisfy a judgment out of the judgment debtor’s interest in the limited liability company and may not be ordered by the court.“

Estate Planning

To avoid having income frozen inside the LLC as a result of a charging order, the Wyoming Close LLC can be owned by a Wyoming Domestic Asset Protection Trust (DAPT), under which a trustee may make discretionary distributions to the debtor’s family and perhaps even directly to the debtor.

This type of planning is best done before it is needed. Significant potential benefit may be realized in terms of leverage against creditors, if ever needed.

Confidentiality

If you desire privacy, keep in mind that Wyoming does not require the members or managers to be listed on the public record.

Tax implications for an LLC

Wyoming has no income taxes so a Wyoming LLC is not taxed by the state. An LLC normally passes the taxes through to its owners and if those owners live in a state that taxes income, they would pay state taxes in that state.

Since an LLC normally passes the taxes through to its owners and if those owners are a Wyoming trust, there may be considerable tax advantages for clients who live in a state with state income tax.

Lower cost

Wyoming state fees are some of the lowest in the nation... especially since Nevada raised their fees and added taxes the beginning of June, 2015.

Since Wyoming has had limited liability companies available longer than any other state, has the strongest laws protecting the members and managers of an LLC, Wyoming is the obvious state of choice for establishing LLC corporations.

Monday, June 8, 2015

An International Monetary Fund (IMF) mission led by Carlo Sdralevich visited Amman from May 27 – June 4, 2015 to discuss with the Iraqi authorities financial assistance to Iraq under the Rapid Financing Instrument (RFI). At the end of the visit, Mr. Sdralevich issued the following statement:“The mission has reached a staff-level agreement with the Iraqi authorities for IMF emergency assistance of SDR 594.2 million (approximately US$833 million) under the RFI. Subject to IMF management approval, the staff-level agreement is expected to be submitted to the IMF Executive Board for consideration in July 2015.Read entire story @ http://www.iraq-businessnews.com/2015/06/08/iraq-gets-833m-imf-emergency-funding/

Wednesday, June 3, 2015

Mendez visit the offices of Internet Management for a fraud investigation

The raid conducted by the Federal Bureau of Investigation (FBI, for its acronym in English) during the morning in a business that sells dinars, located on Roosevelt, Hato Rey Avenue, is related to a fraud investigation, He confirmed the press spokesman of the federal agency, Moses Quiñones.

"In general, we could say it's a case of fraud," the official told this newspaper.

He explained that a federal grand jury takes nearly a year investigating the alleged fraud which did not elaborate. FBI agents, accompanied by the IRS and police officers in Puerto Rico, arrived at about 7:00 am at the offices of Internet Management Mendez. Quinones explained that could be there until noon. He said that, in general, in raids seeking documents and computers. So far, it is not anticipated that the FBI arrests perform this procedure. Mendez Internet Management is dedicated to the sale of dinars. The business is best known for his radio and television programs, called "The Truth About dinars", and cyber dinarespr.com page. Since 2005 to the present it is sold on the island this coin Iraq under the allegation that "in the near future" will increase its value, as described cyber company page. It also specifies that Internet Management Mendez sold a minimum of 1,000 dinars for $ 2. It has emerged that there are people who have bought up to $ 150,000 in these dinars. On the other hand, last night, the owner of the company, James A. Mendez, posted on his Facebook wall a hopeful message. "Everything is there squaring .... We will have our victory ... !!" he wrote. He accompanied the citation with a photograph that shows a light at the end of a tunnel.

Our cameras were rolling at a currency exchange company on Buford Highway and a house on East Brookhaven Drive as agents removed boxes of evidence.

FBI agents, along with the Brookhaven Police Department, descended on the home before 7 a.m. and stayed through the day.

We first showed you the scene on Channel 2 Action News at Noon, and again on Channel 2 Action News at 5 p.m. as agents continued to go in and out of the home.

Agents were seen taking equipment in and removing plastic gloves when exiting the home.All day neighbors were quiet, but curious. Some took pictures of what was happening at the corner house. Neighbors tell us businessman Ty Rhame lives in the home with his wife and young child.Neighbors said Rhame is in the foreign currency business.

Rhame's business, Sterling Currency Group, was the location of the second raid involving Brookhaven police, the FBI and U.S. Marshals.

When asked to elaborate on the details behind the search warrants and what officials were gathering in the raids, the FBI sent a statement saying they are "not in a position to discuss the details of those searches at this time."

Tuesday, June 2, 2015

Nevada's Republican governor, Brian Sandoval, secured an unlikely victory when the conservative state Legislature approved a huge tax increase at his urging as part of a plan to boost education spending.

The $1.1 billion package raises taxes on businesses and cigarettes, and it makes permanent a $500 million bundle of temporary payroll and sales taxes.

Sandoval's win on Monday came on the last day of the legislative session, and the proposal's fate had been in doubt until late Sunday when several skeptical Republicans in the state Assembly pledged support.

The plan had faced vocal resistance for months, led by anti-tax conservatives emboldened by election victories in November that increased their majorities in both chambers.

Many critics noted that Nevada voters had overwhelmingly rejected a similar business tax plan and said the lawmakers shouldn't go against their wishes.

Sen. Don Gustavson said legislators "should be ashamed of themselves to force through the largest tax increase in Nevada's history that includes the type of tax that voters did not support."

"And you wonder why our constituents distrust politicians?" he added.

Gustavson and Sens. Pete Goicoechea and James Settelmeyer, all rural Republicans, were the only opposition in the Senate, which passed the tax plan 18-3 Monday.

That vote came after the Assembly passed the plan 30-10 Sunday night after heavy-hitting business groups lined up behind it.

The tax increase will allow Sandoval to pump millions of dollars into programs for poor students and children learning English. The state has lagged behind others for years in education rankings and on school funding, but it has consistently rejected efforts to raise revenue.

Republican Sen. Scott Hammond had been among the skeptics, but he said his concerns about accountability had been eased, in part by the passage of his bill allowing students to use public funds at private schools.

"I can assure you that there have been significant reforms. We have one of the best, if not the best, school choice reform programs now in the nation," Hammond said. "For that reason, I can support this."

Elements of the plan include:

— A hike in the business license fee. The fee for corporations would rise from the existing $200 a year to $500, while the fee for the rest of the business entities would remain at $200.

— A hike in the payroll tax. Sandoval's plan raises the state's existing modified business tax from 1.17 percent to 1.475 percent of wages beyond the first $200,000 a company pays out each year and sets the rate at 2 percent of those wages for the mining industry and financial institutions. Companies would still get to deduct health care premiums for employees from the calculation.

— A "Commerce Tax" on gross revenue. Industry-specific tax rates will apply to businesses with more than $4 million in Nevada revenue each year. Businesses can count 50 percent of their commerce tax bill as a credit against their modified business tax bill — a provision that's intended as a perk to those who employ people. The commerce tax aims to capture more money from capital-intensive businesses such as mines and those that do business in Nevada but aren't based here.

— A flexible payroll tax rate. The plan allows the state to lower the modified business tax rate if revenues from the new commerce tax and MBT rate bring in more revenue than projected.

— An extension of "sunset taxes." More than $500 million of the plan comes from making a set of expiring payroll and sales taxes permanent.

— Cigarette taxes. The bill raises a tax on cigarette packs by $1, which is expected to generate about $100 million over two years.

Baghdad (Forat) -Iraq's oil export in May, at 3.145 million barrels per day (bpd), was the highest in decades, the Oil Ministry said today.

In total, the country exported 97.504 million barrels in May, bringing in 5 billion U.S. dollars in revenue, at an average selling price of 55 dollars per barrel, the ministry said in a statement emailed to Xinhua.

The ministry attributed the amount of export, "unprecedented for decades," to its "extraordinary efforts."

"The ministry has made extraordinary efforts to increase the crude exports in a bid to compensate the delay of loading due to bad weather," the statement quoted ministry's spokesman Asim Jihad as saying.

In 2014, Iraq exported a total of 918.114 million barrels of crude oil, earning 84.215 billion dollars in revenue.

Iraq's economy relies on oil for more than 90 percent of its revenues.

In 2010, Iraq announced that its proven oil reserves had increased to 143.1 billion barrels, from the previous estimate of 115 billion barrels./End/

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